Project Materials

APPRAISAL OF MATERIALS HANDLING MANAGEMENT IN MANUFACTURING FIRMS IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The necessity for effective and efficient inventory management. Inventory management and control have become necessary as a result of recent technological advancements in corporate activities. For more than a decade, inventories were handled routinely by a clerk without the use of inventory procedures, but in recent years, sufficient attention has been paid to inventory management and control.

Inventory control has the effect of taking enough care in assessing the products and materials to be held in stock, deciding the level of stock holding of particular items, and lastly regulating the input and issue of stock into and from stores and warehouses. Any management that neglects inventory control will undoubtedly incur charges that will affect overall business profit.

Inventory shortages will disrupt operations and cause additional losses. On the other side, if there is an unintended overstocking of items in inventories, the organization’s funds will be trapped in stock rather than being used for profit.

It is because of these facts that every organisation will decide how much and how frequently to make orders in order to save costs and balance the total cost of excess and understocking. Therefore, the effect of inventory control in modern organisations cannot be overstated.

ABC transport, associated bus company limited, began operations in road passenger transport on February 1st, 1993, as an offshoot of rapid identity with the goal of running a model road transport system in Nigeria. Capital Alliance Private Equity (GAPE) acquired 30% of ABC Transport in March 2003.

Capital Alliance (Nigeria) is a stakeholder in ABC Transport, and the partnership repositioned the company for higher performance. ABC Transport operates premium bus services based on transportation; its services are specifically tailored to stand apart.

Evers who might otherwise utilise our services. Operations in Nigeria are carried out in ultramodern terminals with extensive language support in cities such as Lagos (Jibpwu and Estac), Aba, Owerri, Port-Harcourt, Abuja, Enugu, Okene, Onithsa, and Umuahia, among others. ABC buses are double-decker and feature the company’s trademark reindeer. The choice of render as the company’s trademark.

The symbol was created following a thorough examination of the animal’s characteristics, including its strength, speed, and hard movement. ABC Transport was named the finest transporters in Nigeria by the Chartered Institute of Transport Nigeria, and they have since continuously received the national bus operator of the year award, as well as other accolades from respected groups.

1.2 Statement of the Problem

Most organisations are unaware of the need of maintaining an efficient inventory control mechanism, and as a result, many of these organisations are unable to establish themselves in business.

Some of the problems that contributed to their inability to establish themselves in business include a lack of sufficient load inventories, capital constraints, and loss due to obsolescence and deterioration.

Simultaneously, material shortages have arisen at a time when they are desperately needed, causing delays in operations. It is based on the influence of inventory control in modern organisations, as it relates to ABC transport, and it also provides remedies through this study.

1.3 GOALS OF THE STUDY

Inventories are stocks of completed commodities and raw resources that an organisation keeps for strategic purposes. Inventory is required to run an organisation more efficiently by keeping the operation at a reasonable rate and maintaining optimal stock levels.

The objectives include determining: who determines inventory decisions in ABC transport? If the systems used in ABC transportation are aligned with the organization’s goals?

And, if this is not the case, this study will assist ABC Transport in recognising and resolving problems in inventory management and control throughout the organisation.